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www.cnn.com
Lifting of steel tariffs appears likely
Planned expiration of tariffs is 16 months away
WASHINGTON (CNN) -- The Bush administration is all but certain to announce Thursday that it is lifting the tariffs imposed on non-American steel 20 months ago, several administration officials have told CNN.
"The decision I make will be based upon my strong belief that America's consumers, America's economy is better off with a world that trades freely and a world that trades fairly," President Bush told reporters Thursday.
"And I listened to an International Trade Commission report about the effects that steel imports were having upon our important industry. I acted. I acted to give the steel industry time to adjust. I acted in time for us to say to the world that we will trade, but we want to trade in a fair way. And the decision will be announced here shortly," he said.
The administration will promise to closely monitor the industry to ensure that foreign steel is not dumped into the United States at below market rates, and will make the case that both the American steel industry and the overall U.S. economy have made significant strides since President Bush imposed the tariffs.
The decision is politically sensitive because of support for the tariffs in key presidential battleground states -- Pennsylvania, Ohio and West Virginia chief among them.
But the White House and other administration officials began alerting key players in the debate Wednesday, and several officials said plans were in the works for an announcement Thursday in Washington.
Top presidential advisers concluded that the threat of sanctions from the European Union and other trading partners left Bush with little choice but to lift the steel tariffs 16 months ahead of their planned expiration.
A bruising trade war would do more harm to the economy than the potential good derived from protecting the steel industry, top administration officials concluded.
They also say many U.S. manufacturers stand to benefit from lifting the tariffs because they have complained about higher steel costs.
Background: Political roots
The Associated Press reports that the administration initially imposed the tariffs in hopes of winning votes in key steel states such as Pennsylvania, West Virginia and Ohio.
But it faced a barrage of complaints from steel-consuming industries, according to the AP, who claimed the higher prices they had to pay were costing more jobs at U.S. steel companies than were being saved.
Domestic steel supporters said the president had an obligation to fulfill promises he made during the 2000 campaign, the AP reports.
"The White House knows the U.S. industry still confronts serious issues including massive global over-capacity and a whole variety of foreign subsidies that encourage this over-capacity," Alan Wolff, a Washington attorney representing U.S. steel companies, told The Associated Press.




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